No one wanted to help Rhode Island be ostriches

State still on the hook for 38 Studios loan

Last month, Kyle called Rhode Islanders ostriches for wanting the state to simply not pay the $90 million owed to investors who purchased bonds used to fund Curt Schilling’s now-defunct development house, 38 Studios (Kingdoms of Amalur).

Incidentally, 38 percent said the state should pay the debt. Coincidence?

According to Providence Journal, state lawmakers begrudgingly approved a starting, $2.5 million payment. They also budgeted 50 grand for “a robust” study on the financial and “reputational impacts” of, again, simply defaulting on the loan.

Unfortunately, no financial experts even bid on the contract, despite lawmakers shopping it around. At least not until word got out, at which point former securities lawyer and investment banker Edward “Ted” Siedele stepped up to bat. Siedele believes there is no “unconditional obligation” to pay all debts. I believe Siedele got real happy when he saw there was no competition for this contract and that the state practically couldn’t refuse. 

You messed up, Rhode Island. Pay your damn bills like the rest of us.

No bidders for study of how 38 Studios loan default would affect R.I. [Providence Journal]
via [Polygon]

Steven Hansen